Business Partners at different stages in life save $31,171 annually with changes to their tax strategy
Client Snapshot
Industry: Online Training Platform
Gross Revenue: $1,007,634
Entity Type: S-Corporation
The Challenge
Two business partners came to us with the feeling that they were not saving enough in taxes and had a general mistrust in their acounting team. Their CPA was unresponsive, inconsisent, and didn’t provide pro-active strategic planning. They didn’t fully understand their existing tax strategy and were uncertain about their ability to retire. Both of them were in different stages in life – one was ready to retire and the other was younger with two young children and needed to continue to work, which had made decision making harder and more complex. They did not have a solid financial team to assist in guiding them through their financial decisions.
Encurio’s Approach
With business partners, we always start with getting to know their unique needs, personal goals, and circumstances because strategies can positively affect one and negatively affect the other. In this case, both partners were majority partners so strategic planning was done together to address the sometimes conflicting goals.
- We aided in restructuring how they were paid by the company to more accurately reflect their roles and participation in the operations.
- Income shifting to spouse and children who were working for the company properly
- Reviewing and advising on reimbursement policies to ensure expenses were properly captured and deducted
- Aided in retirement plan selection
- Utilized the Augusta Rule for monthly in-person company wide meetings
- Discussed various exit planning options for the partner wanting to retire
The Impact
Working with these partners, we were able to help them have more honest conversation about their needs, which resulted in them both feeling more educated on what exit options there are, which helped reduce fear and opened lines of communication between them. Both have a more clear understanding of how they are going to get to their retirement goals, their tax strategy, and have a financial team to aid in decision making. Both of them feel more educated, confident, and supported in their decision making. Their return on investing in Encurio planning is 6134% over the next 10 years.
Hear from the Client
“What an amazing firm! This is not your typical CPA. My company 100% outgrew our prior CPA and didn’t know it until we started meeting with Encurio. Their ability to tax plan and strategize the multiple companies I own was mind blowing. These are NEXT LEVEL services. They are going to save my company, and me personally, a TON of money this coming fiscal year. If you are looking for someone to do much more than simply file your taxes, but look into what you have going on as a whole, and help you find ways to have your money go further, this is the firm you want to do it with.”
To learn more about how Encurio’s strategies could improve your businesses finances, set a meeting with us.
